- During the past few days, in different events, the chief of central bank of Iran, Seif, emphasized the central bank’s plan for the banking interest rates. However, he asked the banks to reintegrate the rates first by themselves before any action taken place by the central bank. The Melli Bank’s CEO also said that the deposit interest rate could be defined at 20%level, if the inflation rate would be announced at 15%. .it is clear that the interest rate will definitely decrease next year but it’s unlikely to become less than 18%.
- During the last week the free market USD depreciated against IRR and reached the 33,000 IRR. it seems that the supply from petrochemical companies and exchange offices has increased. On the other side, the USD official rate gained almost 15% in a week. The low rate of dollar will affect the overall market. Reaching any agreements in nuclear negotiations will put more pressures on dollar and yet it is still ambiguous how the government is going to control it. The best strategy is minimizing the shares which have high correlation with free market USD rate.
- If the market gets a good understanding of the economic situation in different scenarios, it will make the Banking sector the market leader. In case of any nuclear agreement, all the money will be injected to the economy by banks. If not, the interest rates remain high and more investments will run to this sector due to other sectors’ recession. Above all, the banks’ shares especially Saderat and Tejarat are under value.
- In order to protect the investors regarding the volume of liquidity which is blocked in halted refinery shares, the Security and Exchange Organization of Iran set a deadline for those companies to clarify their pricing. Based on this announcement the companies have to present their unaudited forecasted EPS for FY2014 to the SEO by today. The board members will be in charge of any delay.
TSE at a glance
IFB at Glance
Trading Halts & Delays
If the market players intend for more liquidly due to T+3, there will be only tomorrow to sell their shares, Only 4 working days has left to the end of the current Persian New Year. It seems those who were looking for more liquidity have already left the market and new waves of hope and enthusiasm have entered to the market. However, no big gains are expected during the last week of the year.
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
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